Giant Merck buddies up with little KalVista on lead drug, igniting stock with a $760M deal
Pharma giant Merck $MRK is buying into micro cap biotech player KalVista $KALV, bagging an option on a lead drug and outlining a rich potential future for the company if all goes according to plan.
The US/UK hybrid biotech, which started the day with a $72 million market cap, saw its fortunes change instantly as news spread that Merck was paying $8.50 a share for a 10% stake in the company. Its shares rocketed up as news spread that Merck is also paying $37 million upfront to bag an option on KalVista’s drug for diabetic macular edema, KVD001.
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